Supporting a Circular Economy
Caterpillar products are built to be rebuilt. They are designed to withstand heavy-duty operating conditions and to be restored and used for multiple lifecycles, reducing the need for raw materials and associated GHG emissions. Designing products and components to be used throughout multiple service lifecycles is the essence of our remanufacturing approach across multiple products and brands.
*It is recommended to replace before failure. Replacements after failure may result in partial credit.
Remanufacturing Goal
Increase sales and revenues from remanufacturing offerings by 25% from 2018 to 2030.
increase in sales and revenues from remanufactured products from 2018
Data includes remanufacturing offerings provided by Cat Reman, Progress Rail, Solar Turbines, Caterpillar Energy Solutions and Caterpillar Defense.
In March 1973, Caterpillar established itself as the first company in the United States (U.S.) with its own diesel truck engine remanufacturing plant and released the first direct injection truck engine from its assembly line. Prior to that, an aging diesel truck engine in the United States was usually replaced with a new one after it passed the 120,000-mile mark. That changed, thanks to Caterpillar. In the years following, the Cat Reman product line expanded to encompass most of the industries Caterpillar serves today. Less energy and material are needed because we don’t have to harvest and assemble all the raw material required for new. We’re starting with core parts that can be reused - not manufacturing a completely new part. Rather, the remanufacturing process uses the existing resource to build it back to like-new condition.
Through Cat Reman:1
pounds of material taken back in 2022
end-of-life eligible returns collected2
Sustainability Benefits of Remanufacturing:3
less greenhouse gas process emissions
less new materials used4
less process energy use
1 Data does not include Progress Rail, Solar Turbines, Caterpillar Energy Solutions, and Caterpillar Defense.
2 Represents Cat Reman customers’ end-of-life components (“core”) returned to Caterpillar by dealers, as a percentage of core returned plus unreturned core eligible for credit no later than 2022.
3 Represents U.S. environmental impacts comparing “gate-to-gate” remanufacturing and manufacturing processes for engines and components. Based on 2018 external study of Cat engines, alternators and turbochargers. Does not include impacts elsewhere in our value chain.
4 By weight.
Solar Turbines
Solar Turbines remanufactures turbine components to support the overhaul business. Through advanced remanufacturing processes, components are returned to like-new condition. Once components have been certified, they are used in major assemblies and integrated into the overhaul engine exchange fleet. This allows customers to exchange their engines in days rather than months of downtime. A similar process is used to remanufacture our gas compressor components.
The exchange equipment is tested and certified to the same performance and emission specifications as new equipment and may receive the latest enhancements and design improvements, as required. Solar continues to expand remanufacturing capabilities and invest in condition-based engineering, which allows for more finite determination of remaining useful life. Condition-based engineering improves remanufactured content and extends overhaul cycles while ensuring quality at every step.
The company has made significant investments in internal repair and remanufacturing capability. Additionally, Solar partners with its suppliers to remanufacture and extend the life of various turbomachinery components. As a result, Solar’s remanufactured content has grown steadily over the years and provides significant support to overhauled turbomachinery equipment worldwide. The company also continues to invest in facilities around the world to expand capabilities with the goal of reducing transportation and providing a faster customer response.
Cat Reman
Cat equipment is built to last. It is designed to withstand heavy-duty operating conditions and to be restored and used for multiple lifecycles. Cat Reman gives materials a new life, delivers sustainability benefits to our customers and helps Caterpillar contribute to the circular economy. Caterpillar has been remanufacturing for 50 years of our nearly 100 years in business. Today, remanufacturing is at the heart of our strategy to help customers build a better, more sustainable world.
When a component reaches the end of its initial serviceable life, a dealer can return the used component, or core, to Caterpillar. That core is cleaned, inspected, salvaged and remanufactured to original factory quality and performance specifications. This includes any relevant engineering updates. Cat Reman uses state-of-the art salvage techniques, strict reuse guidelines, and advanced remanufacturing processes and quality controls to ensure that remanufactured products provide like-new performance, coupled with a same-as-new warranty. That means when a customer purchases a Cat Reman product, they’re getting an affordable, accessible product that performs like new — and one they can say supports a circular economy. Their total cost of ownership can be lower, too, after a qualifying core return and core deposit refund.1
We work together throughout our primary segments — CI, RI and E&T — to expand the enterprise’s offerings to our customers, lower their costs and provide quick turnarounds. Remanufacturing is a true “win-win” for both our customers and the company.
1 Terms and core acceptance criteria apply.
Progress Rail
Progress Rail extends the use of existing locomotives by providing rebuild, overhaul and repower options. These modernization programs upgrade electrical and mechanical systems and other components to extend locomotive life by 10 years or more with appropriate maintenance. We also offer reconditioning or repair services for freight cars and a wide range of components, ensuring value-added returns are available for customers and reducing annual maintenance costs. When locomotives and railcars finally reach the end of their usable lives, they can be recycled for other uses through Progress Rail’s scrap management services. We also provide rail take-up and inspection services, including grading of previously used rail that is then recycled, repurposed for other non-rail uses, or relayed into track. In 2022, Progress Rail processed about 70,000 gross tons of material from its scrap management services.
Cat Certified Rebuild
In the same spirit as Cat Reman, Cat Certified Rebuild programs increase the lifespan of equipment by providing customers with product updates at a fraction of the cost of buying a new machine, enabling us to extend the life of materials. A complete Cat Certified Rebuild includes more than 350 tests and inspections, automatic replacement or reconditioning of approximately 7,000 parts, and a like-new machine warranty. Trained dealer service professionals perform rebuild work using genuine parts while incorporating the latest engineering updates. Caterpillar provides information, data, training and service tools to help dealers decide which parts to reuse to achieve the expected longevity of rebuilt components. Since 1985, Caterpillar and Cat dealers have rebuilt more than 43,000 machines, powertrains and components.
Caterpillar Energy Solutions X-Change
The X-Change program is a parts replacement program for medium and large MWM and Cat branded engines and a great example of circular economy principles. By remanufacturing and selling X-Change parts, engines and gensets, customers benefit from quick and cost-effective overhauls and repair services, maximizing uptime. The replaced parts that reached the initial serviceable lifetime are returned to Caterpillar Energy Solutions where they are cleaned, disassembled, inspected and remanufactured to like-new condition. Technology updates that could potentially reduce emissions and increase efficiency and reliability are included.
Caterpillar Defense
Supporting U.S. and allied military forces and governmental agencies worldwide, Caterpillar Defense responds to each operation’s individual needs for machines, engines, power generation, services and support, offering solutions that extend the lifecycle of products. Through the U.S. Military Service Life Extension Program (SLEP), Cat dealers give machines a complete second lifecycle at a fraction of new replacement cost. Caterpillar trained and qualified technicians conduct repairs on military bases and customize replacement parts for local needs.
